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The International Auditing and Assurance Standards Board sets high-quality international standards for auditing, assurance, and quality control that strengthen public confidence in the global profession.

The International Accounting Education Standards Board establishes standards, in the area of professional accounting education, that prescribe technical competence and professional skills, values, ethics, and attitudes.

The International Public Sector Accounting Standards Board develops standards, guidance, and resources for use by public sector entities around the world for preparation of general purpose financial statements.

Newsletters & eNews

PAIB eNews Special Edition: December 2011

COSO Issues Updated Internal Control Framework

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has issued for public comment its updated Internal Control—Integrated Framework, which aims to improve the original framework issued in 1992. The original framework has become one of the most widely used internal control frameworks in the world.

In the twenty years since the inception of the original framework, business and operating environments have changed dramatically, becoming increasingly complex, technologically driven, and global in scope. At the same time, stakeholders are more engaged, seeking greater transparency and accountability for the integrity of internal control systems that support the business decisions and governance of the organization.

The updated framework builds on what has proven useful in the original version. It retains the core definition of internal control and the five components of an internal control system. The broad criteria used to assess the effectiveness of an internal control system are unchanged. The updated framework continues to emphasize the importance of management judgment in the design, application, and assessment of the effectiveness of a system of internal control.

At the same time, the updated framework introduces enhancements designed to clarify concepts and ease use and application. One of the most significant enhancements is the codification of internal control concepts, introduced in the original framework, into principles and attributes. Serving on the COSO Advisory Council, IFAC has been actively involved in the update process for Internal Control—Integrated Framework.

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